AssetID: 55227522
Headline: UNCAPTIONED: Fed Cuts Interest Rates as Job Market Weakens, Despite Government Shutdown
Caption: Fed Cuts Interest Rates as Job Market Weakens, Despite Government Shutdown. The U.S. Federal Reserve has cut its key interest rate by a quarter percentage point to a range of 3.75 to 4 percent, its lowest level in three years — as concerns about a slowing labor market outweigh inflation fears. The move comes despite the ongoing government shutdown, which has delayed key economic data and left central bankers "flying blind." Fed Chair Jerome Powell said job growth has cooled and described the labor market as "less dynamic and somewhat softer," though not collapsing. The decision wasn't unanimous — two Fed members voted against the cut, one favoring a larger reduction. Powell also announced the Fed will halt the shrinking of its balance sheet in December, signaling a more cautious stance amid economic uncertainty. While inflation remains above target, Powell said it's moderating, allowing the Fed to focus on supporting jobs. Still, he warned that future cuts aren't guaranteed, noting there are "strongly differing views" among policymakers. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current affairs & Politics,U.S. Federal Reserve,Interest rate cut,Economic slowdown,Labor market weakness,Jerome Powell,Government shutdown impact,Monetary policy,Inflation moderation,Balance sheet halt,Economic uncertainty,Fed decision split,Employment outlook,Recession risk
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